Launching a debit or credit card enables companies to provide end-users with a convenient way to access and spend their funds. Alongside the benefit of providing them with an easy method to make purchases, building a card product using the Synctera Platform comes with a distinct advantage – being able to make decisions and take actions in the card transaction authorization flow. 

So what happens in a typical card transaction authorization flow?

When an end-user swipes or taps their card, or after they hit ‘purchase’ on an online order, the merchant’s payment system sends an authorization request to the payment processor. The payment processor routes the authorization request through the card network where it ultimately lands at the card issuer. The card issuer then conducts the transaction authorization, assessing whether they should respond with an approval or decline code. This entire process typically occurs in under 5 seconds.

The Synctera Platform is part of the card issuer decisioning process and provides a standard card transaction authorization flow for customers to use. This authorization flow runs a variety of checks and automatically decides whether to approve or decline transactions. Some of the reasons a transaction may decline are:

• Insufficient funds in the account
• Suspected fraud
• Amount violates spend controls
• Customer or account is in bad standing or suspended
• Address Verification Service (AVS) did not match address on file 
• Network stand-in decision

However, some businesses may want to customize this process further due to intricacies in how their business operates or their end-users behave, taking more control over which transactions are declined.

With Synctera’s Authorization Gateway, customers can seamlessly integrate with the card transaction authorization flow, applying their own decision criteria to create unique features—such as customized controls for end-user spending or enhanced fraud prevention measures tailored to specific geographic regions. Let’s explore these topics in more detail!

Unique Spend Controls

Although Synctera offers built-in spend controls to monitor or restrict card spending based on time range, payment type, merchant category code (MCC), and the amount of money, customers have the opportunity to expand beyond them. Here are just a few examples of additional spend controls easily implemented using the authorization gateway:

• Geofencing: restricting spending to certain geographies, including specific countries or states, or only allowing transactions within a certain distance from their home address.
• Merchant ID restrictions: restricting spending or permitting spending of specific merchant IDs (MIDs) instead of using more broad MCCs.
• Card payment method: restricting specific card payment methods, such as card-not-present (CNP) methods to prevent online purchases.
• Time of day: restricting card spending during certain times of the day.

Enhanced Fraud Prevention

Every card transaction processed through the Synctera platform is monitored by Synctera Fraud, ensuring a foundational layer of fraud detection and prevention. However, since customers typically bear the responsibility for fraud-related losses, many choose to implement additional, more stringent fraud rules tailored to their specific risk tolerances and business needs. 

Whether it's to address regional fraud trends, mitigate industry-specific vulnerabilities, or leverage proven fraud tools, the Authorization Gateway ensures real-time access to the authorization flow.

Business Logic Requirements

The Authorization Gateway enables companies to implement tailored business logic, delivering enhanced value to their end-users. By leveraging merchant and transactional data embedded in the authorization request, they can unlock opportunities to design better customer experiences.

For instance, a family banking app could allow end-users to create subaccounts for family members with dedicated savings buckets for specific merchant categories, such as fast food or ATMs. When an authorized family member attempts to make a purchase, the app can leverage the authorization gateway to check if sufficient funds are available in the relevant savings bucket assigned to that merchant category. If the funds are adequate, the transaction is approved, ensuring responsible spending aligned with the family’s financial goals.

How Synctera’s customers are using the Authorization Gateway

Reset

Reset is an Earned Wage Access (EWA) platform that enables banks and credit unions to offer their customers daily access to their pay as they earn it. Reset uses the Authorization Gateway to make real-time transaction decisions based on their cardholder’s latest pay data from their income sources (payroll systems, gig platforms, government benefit systems, and more).

When an end-user uses their card, Reset runs real-time checks to ensure the end users’ pay data supports their spending limit and will decline the transaction if it does not. 

You can learn more about Reset here.

Mazlo

Mazlo is a banking platform specifically designed to simplify accounting and finance management for non-profits. A standout feature of Mazlo is its ability to manage project-specific finances with precision.

When an end-user uses their card, Mazlo leverages its Authorization Gateway to perform a real-time balance check. This process ensures only the portion of the non-profit’s account balance allocated to a specific project is considered during the transaction. As a result, funds designated for particular initiatives are transferred to the card in real time and used exclusively for their intended purpose.

You can learn more about Mazlo here.

Empowering Customization and Control for Every Transaction

Synctera’s flexible and adaptable platform empowers businesses to create smarter, more tailored card transaction authorization experiences that align with their business needs. Whether it's implementing custom spend controls, enhancing fraud prevention, or applying specialized business logic, Synctera’s Authorization Gateway provides the tools to ensure businesses can seamlessly integrate their specific requirements. 

By offering robust, real-time decisioning capabilities, Synctera allows businesses to maintain full control over their card products, ensuring a secure, efficient, and user-centric experience. As seen with customers like Reset and Mazlo, Synctera’s flexible platform can adapt to the unique needs of new, innovative banking products.

You can learn more about how to implement Synctera’s Authorization Gateway here.

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